LNG

Gasunie, one of the main LNG importers in the Netherlands with global storage giant Vopak, said the company’s EnergyStock subsidiary has issued a call for “expressions of interest” in long-term flexibility Dutch gas storages services.

The Gasunie unit’s main facility is located in the north of the Netherlands and connected to the Dutch gas transmission network at the heart of the Dutch Title Transfer Facility (TTF) benchmark gas market.

“In this turbulent energy market, EnergyStock has experienced scarcity of gas storage services and a market demand for long-term contracts,” the company explained.

“In order to satisfy this demand and give market parties the opportunity to establish certainty in uncertain times, EnergyStock will offer long-term flexibility services for a duration of five to 10 years, with effect from Storage Year 2025,” the statement from Gasunie explained.

Non-binding phase

“As a first step, EnergyStock invites interested market parties to formulate a non-binding ‘Expression of Interest’ for long-term flexibility services,” said Gasunie.

“This process starts on July 2 and interested parties are asked to express their interest no later than 31 July 2024,” it added.

In addition to long-term services, EnergyStock stated that it would continue to offer short-term flexibility services, short lead time rights and interruptible services.

The EnergyStock natural gas is stored in six salt caverns at a depth between 1,000 metres to 1,500 metres and whose gas volume ranges from 5,000 megawatt to 10,000 MWh.

The technical lay-out consists of two tubings per cavern instead of one tubing that results in an exceptionally high injection and withdrawal rates.

Gas is injected into the caverns using electric compressors and is withdrawn using equipment for heating, pressure reduction and gas drying.

“Injection and withdrawal capacity is available 24/7 throughout the year,” said Gasunie.

The facility has high reliability with an efficient short period of yearly maintenance that is principally planned during summer shoulder months.

Supply balancing

“Gasunie aims to facilitate the continuous balancing of supply for its customers and demand of natural gas,” said Gasunie in its statement.

“They achieve this by offering fast-cycle gas storage services using their unique natural gas storage in the northern part of the Netherlands,” it added.

Gasunie’s network is one of the largest high-pressure pipeline networks in Europe, comprising over 17,000 kilometres (10,650 miles) of pipelines in the Netherlands and northern Germany.

The Dutch state-backed utility also has LNG import facility stakes in the Gate terminal in Rotterdam and the Eemshaven import hub in Groningen,

The utility is additionally involved in the German natural gas market and in developing the onshore LNG terminal in Brunsbüttel on the Elbe.

EnergyStock aims to guarantee a transparent process wherein parties have a level playing field.

“We decided to auction our short-term flexibility services for Storage Year 2025 in the fourth quarter of 2024,” said the company.

“Details of the auction will be shared prior to the auction. The capacity and working gas volume to be auctioned will depend on the progress made with long-term agreements,” it added.

Asian liquefied natural gas cargo prices moved higher in the past week while European Union natural gas values declined, opening trading opportunities while crude oil prices jumped to seven-month highs and Middle East geopolitical tensions increased.

Asian liquefied natural gas prices and European cargo values increased for a third week as the Northern Hemisphere winter gas season is set to close with high storage yet to be tested for a second year by adverse weather while crude oil hit a four-month high on negative supply forecasts.

Asian liquefied natural gas prices and European cargo values increased for a second week from previous three-year lows as cooler weather and energy policy uncertainties offset high storage as the Northern Hemisphere winter gas season winds down after some of the warmest months on record hit demand.

European and Asian liquefied natural gas prices and wholesale values fell again as European Union gas storage continued its early build while Germany and China were receiving more cargoes.

North Asian spot cargo prices increased on the week though the differential remained at almost $10 in favour of the Dutch Title Transfer Facility European Union benchmark price as net withdrawals from EU gas storage increased because of sub-zero temperatures in the region.

European and Asian LNG cargo prices and natural gas pipeline values remained high even as the Nord Stream I pipeline re-opened on schedule after maintenance, restoring the main Russian gas connection to the European Union, though failing to alleviate long-term gas market supply concerns.

North Asian liquefied natural gas spot prices were overshadowed by a renewed surge in the Dutch Title Transfer Facility wholesale futures price to over $40 per million British thermal units while US Gulf Coast prices jumped because of the new politically fixed supply line to Europe.

GRTgaz, the French natural gas transmission company with three liquefied natural gas import terminals under its control through subsidiary Elengy, said it had seen a shortfall in Russian supplies and this was being offset with LNG cargoes and additional pipeline flows from Norway.

“We are not currently experiencing any difficulties in supplying or transporting gas over the French network,” said GRTGaz.

“Onshore gas inputs from northeast France, the location at which Russian pipeline gas arrives in the country, are continuing, but at levels below those seen in previous years,” explained the company, headquartered at Bois-Colombes in the northwest suburbs of Paris.

“This decrease is being offset by sustained supplies of LNG, as well as pipeline gas supplies from Norway,” stated GRTGaz.

The company noted that the European Union natural gas market was potentially fast-changing and GRTGaz was making sure that it had solutions for all eventualities.

“As France's main gas transport operator, GRTgaz is part of the system in place to ensure a secure supply,” explained the company.

“As such, it works closely alongside the Ministry for the Ecological Transition, supervising the situation,” it added.

Emergency options

GRTGaz was also working with other French and European gas infrastructure companies, under the supervision of the public authorities, on developing solutions should Russian gas supplies cease.

“We aim to be able to maintain our storage levels over the forthcoming months and provide consumers with gas until next winter,” it stated.

“We are also working with those of our clients who might find themselves affected, ensuring that the measures in place in the event of load-shedding for consumers on the transport and distribution networks being required are properly shared. These measures would only be applicable as a last resort,” declared GRTGaz.

GRTgaz said in its annual review that terminal subsidiary Elengy received 176 LNG cargoes in 2021 at the three terminals in Western and Southern France at Montoir-de-Bretagne, Fos Tonkin and Fos Cavaou. France's fourth import terminal is at the Channel port of Dunkirk.

The terminals also handled six cargo re-loadings, 10 trans-shipments and 14,715 tanker truck LNG loadings during the year.

GRTgaz ensures the pipeline transportation of gas throughout France, though in the southwest the grid is run by regional network company Teréga.

GRTgaz had been receiving fewer transits last year, whether to Spain, which benefited from very sustained supplies from Algeria or to Switzerland (and Italy), which benefited from the Trans-Adriatic Pipeline carrying natural gas from Azerbaijan on the Caspian Sea to southern Italy.

Large network

GRTgaz is the EU’s second-largest European natural gas transporter after Italy with 32,500 kilometres of pipelines and 640 terawatt hours of gas transported in 2021.

The Italian natural gas pipeline network is almost 50,000km in length.

The other GRTgaz subsidiaries include GRTgaz Deutschland, operator of the German MEGAL transmission network.

The MEGAL pipeline system is 1,160km in length and runs from the German-French border at Medelsheim via the Czech Republic's border point with Germany at Waidhaus to the bi-directional cross-border point at the German-Austrian border in Oberkappel.

The MEGAL pipeline system consists of two pipelines: the MEGAL Nord (North) pipeline and the MEGAL Süd (South) pipeline.